Gallagher Completes $13.45 Billion Acquisition of AssuredPartners, Bolstering U.S. Insurance Market Dominance
Rolling Meadows, IL, August 19, 2025 – Arthur J. Gallagher & Co. (NYSE: AJG) has finalized its monumental $13.45 billion acquisition of AssuredPartners, marking the largest sale of a U.S. insurance broker to a strategic acquirer in industry history. The deal, announced on December 9, 2024, and closed on August 18, 2025, significantly expands Gallagher’s footprint in the U.S. middle-market property/casualty and employee benefits sectors, while strengthening its presence in the UK and Ireland. This strategic move, financed through a mix of debt, equity, and cash, positions Gallagher as a global insurance powerhouse, with projected annual revenues reaching $14 billion.
Strategic Acquisition Enhances Gallagher’s Market Reach
The acquisition of AssuredPartners, the 11th largest insurance broker in the U.S., brings 10,900 employees and approximately 400 offices across the U.S., UK, and Ireland into Gallagher’s fold. AssuredPartners, founded in 2011 by private equity firm GTCR and Jim Henderson, specializes in commercial property/casualty, specialty, employee benefits, and personal lines, serving a diverse client base. The deal enhances Gallagher’s capabilities in niche sectors like transportation, energy, healthcare, government contractors, and public entities, while boosting its wholesale, reinsurance, and claims management divisions. According to Insurance Business America, the acquisition aligns with Gallagher’s tuck-in M&A strategy, adding seasoned industry leaders and expanding opportunities for future acquisitions.
Financial Details and Employee Retention Plan
The transaction, valued at a net consideration of $12.45 billion after a $1 billion deferred tax asset, represents an EBITDAC multiple of 11.3x post-synergies. Gallagher expects to realize $160 million in synergies over three years, offset by $500 million in integration costs, including $200 million in non-cash retention awards. A notable aspect of the deal is the $316.15 million in equity awards granted to 572 former AssuredPartners employees, vesting over multiple years to ensure retention, as authorized under NYSE rules. This move underscores Gallagher’s commitment to maintaining talent, with CEO J. Patrick Gallagher, Jr. stating, “I am excited to welcome our new colleagues to the Gallagher family.”
Regulatory Hurdles Overcome
The deal faced scrutiny under the Hart-Scott-Rodino Act, with a second request for information from the Federal Trade Commission delaying closure from Q1 to the second half of 2025. Analysts at BMO Capital Markets expressed surprise at the extended review, given Gallagher’s less than 10% share in the fragmented middle-market insurance sector. However, Gallagher’s active response to regulators secured approval, mitigating risks of employee attrition flagged by analysts. The successful navigation of regulatory challenges highlights Gallagher’s strategic focus on compliance and growth.
Industry Impact and Competitive Landscape
The acquisition cements Gallagher’s position as the world’s third-largest insurance brokerage, behind Marsh McLennan and Aon, following a wave of middle-market consolidations. Aon’s $13 billion acquisition of NFP and Marsh McLennan’s $7.75 billion purchase of McGriff Insurance Services in 2024 reflect similar trends. The deal is expected to deliver double-digit adjusted EPS accretion, enhancing Gallagher’s financial attractiveness. Industry experts, per Reuters, note that the acquisition strengthens Gallagher’s middle-market focus, catering to businesses with annual revenues of $10 million to $1 billion, and leverages advanced data analytics and specialty products for client value.
Cultural and Strategic Alignment
AssuredPartners’ entrepreneurial spirit and client-first mindset align closely with Gallagher’s culture, as emphasized by CEO J. Patrick Gallagher, Jr.: “AssuredPartners’ broad U.S. footprint and middle-market focus make them an ideal merger partner.” Randy Larsen, CEO of AssuredPartners, hailed the deal as a “significant milestone,” while Chairman Jim Henderson praised the shared values driving growth. The acquisition also doubles Gallagher’s presence in Ireland, adding 300 workers and new offices in Cork, Clare, and beyond, per RTE.
What’s Next for Gallagher?
With pro forma revenues of $2.9 billion from AssuredPartners and a combined M&A pipeline capable of over 100 deals annually, Gallagher is poised for aggressive growth. The deal’s completion follows its $1.2 billion acquisition of Woodruff Sawyer in April 2025, signaling a robust M&A strategy. As the insurance brokerage sector consolidates, Gallagher’s enhanced scale and expertise position it to capitalize on emerging opportunities, particularly in data-driven client solutions and international markets.
Keywords: Gallagher acquisition, AssuredPartners deal, U.S. insurance brokerage, middle-market insurance, J. Patrick Gallagher, M&A strategy, CHIPS Act, cybersecurity, retail crime
Sources: Insurance Business America, Reuters, RTE, Investing.com, Insurance Journal, PR Newswire